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Year 13 Target Economics
04 December 2015
During the Autumn Term, the Year 13 Economists have been working hard for the prestigious annual Bank of England Target two point zero competition.
The competition required the team to act as the Monetary Policy Committee and decide whether to change interest rates and consider the effects of their decision on different aspects of the economy such as: inflation, unemployment, international trade and overall economic growth. They also had to decide whether to change the spending on asset purchases under the Asset Purchase Facility which currently stands at £375bn.
On 24 November the students presented their recommendations to a panel of judges from the Bank of England and industry experts at Aston University's Business School. After much deliberation and research, the team decided to keep the rate to 0.5% and to keep asset purchasing (QE) at £375 bn. They produced a very convincing presentation. Their argument included analysis of the benefits of keeping interest rates at 0.5% and future forward monetary policy guidance. Once they had completed their presentation, the judges then had the opportunity to question their decisions by asking them to explain their findings further. The group confidently responded to the demanding questions leaving the judges very impressed with their economic knowledge and thorough understanding of the consequences of their decision.
Congratulations to Beatrice Williams, Georgina Draysey, Laura Dunnaker, Lydia Nash, Ruth Head, Francesca Liddiard and Rachel Orr for their hard work and commitment to the project.